THE FACTORS OF STORE CARDS

Introduction

In this report, it provides an overview of the store card sector. It begins by outline the definition of store card, and its way to operating. It goes on to explain the process when customers may start to use their store cards, and how those are financed, including the comparison of the interesting rates offered by top retailers. It next describes the problems raised for customers who make the minimum repayments. Then, it draws conclusions about the use of store cards and makes recommendations that will help customers.

Definition of store cards and its operation systems

Store cards are plastic cards, which branded with a retailer’s name or trademark that can be used for payment or credit only in that provider’s outlets and other accepting retailers. It aims to encourage customer loyalty and repeat purchases by offering alternative pay methods, the point of sale, the discount on purchases, reward vouchers, free magazines or invitations to the special events and sales previews etc. Some store cards even provide cash withdraw service from ATMs.

The customers purchase their goods or services by using the store cards and later receive their statements. Those statements are sent out monthly for accounts with a credit balance and cardholders are required to make a least 3% to 5% of outstanding balance as minimum payment or settle the full amount payment within a set period from the statement date.

Therefore, store cards are designed to generate customer by offer the package of benefits to cardholders, and the customers need to make a minimum in returns to meet the flexible repayment terms.

The usage and financial states of store cards

Store cards are much similar to credit cards when they come to the financial consideration. The customer choose to use store cards as their payment method, of course, the